KUALA LUMPUR (June 9): Hartanah Kenyalang Bhd (KL:HKB), a Sarawak-based construction services firm, closed 9.4% or 1.5 sen lower on its maiden trading day on the ACE Market of Bursa Malaysia on Monday.
The stock opened at 16 sen, unchanged against its initial public offering (IPO) price of 16 sen per share. Trading in a tight range, between 15.5 sen and 16.5 sen, the stock eventually ended the day at 14.5 sen after some 37.44 million shares exchanged hands.
At 14.5 sen, the company's market capitalisation stood at RM89.9 million.
Construction stocks in the broader market also kicked off the week slow after a recent rally. The Bursa Malaysia Construction Index, which tracks 50 stocks in the sector, have rallied more than 12% since the start of April.
Hartanah Kenyalang ends ACE
“We have navigated numerous challenges, remained steadfast in our vision, and consistently advanced with a clear mission to grow into a significant industry player and ultimately to become a public-listed entity on Bursa Malaysia,” Hartanah Kenyalang managing director Seah Boon Tiat said.
The IPO raised RM19.34 million for the company and another RM12.40 million for its selling shareholders Seah, his elder brother and deputy Boon Kee, as well as chief operating officer Tony Cheok, strategic investor Peter Chai, and minority shareholder Yeo Kwang Min.
Ahead of the listing, applications for Hartanah Kenyalang’s shares from individual public investors came in about five times above the allocation.
The public issue of new shares raised RM19.34 million, of which more than half will be used as project working capital, mainly to pay subcontractors and suppliers.
Hartanah Kenyalang also set aside RM3 million to purchase assets. On its shopping list are six new excavators to replace some older assets, and to increase its capacity, as well as computer hardware and software to expand into design services.
The rest will be used to partially repay bank borrowings and defray listing expenses.
TA Securities is the IPO’s principal adviser, sponsor, sole placement agent, and sole underwriter.
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